Do Low-Income Families Benefit from Minimum Wage Increases? Evidence from State-Level Minimum Wage Laws

Mark Partridge and Jamie S. Partridge
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Jamie S. Partridge: St. John's University / College of St. Benedict, St. Joseph, MN

The Review of Regional Studies, 1999, vol. 29, issue 1, 37-50

Abstract: Several recent studies contend that falling real minimum wage rates are an important factor behind rising wage inequality and increasing poverty rates. Other studies find the more conventional result that they have very little influence on poverty and inequality, but these studies are generally based on simulated labor market responses. This study examines the influence of minimum wage rates on poverty rates and family income inequality using state-level minimum wages. The methodology has the key advantage of not requiring simulated labor market responses to minimum wage increases. The results suggest that increases in minimum wage rates and coverage do not reduce poverty rates or income inequality.

Date: 1999
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